Farmland between Anstey and Bradgate Park is expected to be turned into a new estate with up to 500 houses.
William Davis Homes wants to build on land to the south of Bradgate Road, which links Anstey and Newtown Linford, extending Anstey to the west and bringing the two villages much closer together.
In recent years Anstey has been expanding rapidly to the north on Cropston Road with a large Bloor Homes development.
The new plans are for building on farmland, most of which has already been allocated as suitable for development in the Charnwood Local Plan, meaning less chance of councillors being able to reject the 500 homes.
Charnwood Borough Council will rule on the plans, once submitted.
William Davis Homes said in a statement it would now begin consulting residents and businesses in the area about the development of “up to 500 high-quality homes” on land at High Leys, Rectory Field and Manor Farm on the western edge of Anstey.
The new estate will include a primary school, playing fields, playgrounds and affordable housing, the company said.
Deborah Taylor, county council for Anstey, who also serves as a local borough councillor, said the village should never have been given such a large requirement for new homes in the Local Plan.
She said: “The Cropston Road development is almost done now and the affects are obvious – Leicester Road between the A46 and The Nook roundabout in the middle of Anstey is at a standstill any time of day you go down there.
“And there’s not the facilities for all these new people – not enough doctors, no banking at all and I’d like someone to show my how they think Anstey can cope with all this.
“We’re always gaining more people and losing services.”
(Image: William Davis Homes)
A spokesperson for William Davis Homes said: “William Davis Homes is pleased to be bringing this proposal forward to support Charnwood Borough Council’s identified level of growth for Anstey.
“We are keen to hear everyone’s views before we finalise our plans, and we would encourage anyone who wants to share their thoughts to give us their feedback by visiting the project website and completing the survey.”
A newsletter summarising the proposal is being delivered to residents and businesses closest to the proposed site and residents without online access can telephone or write to the project team. The consultation is running until October 3.
People can find out more about the proposal and provide feedback via an online survey by visiting the project website www.williamdavis-anstey.co.uk.